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Can management tone predict the firm's decision on supply chain configuration?

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  • Zhang, Da
  • Wang, Yuxia

Abstract

This paper investigates the relationship between management tone and a firm's decision on supply chain configuration. We find that during the years 2010 through 2020, a more positive management tone is associated with a lower supply chain concentration. We establish causality through the IV-2SLS approach. In addition, we find that this relationship is more pronounced for firms with greater operational risk, higher industry competition, and a weaker market advantage position. Overall, our results highlight that proactive managers are more likely to anticipate future challenges and proactively address supply chain concentration risks in their current decision-making processes.

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  • Zhang, Da & Wang, Yuxia, 2024. "Can management tone predict the firm's decision on supply chain configuration?," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002538
    DOI: 10.1016/j.frl.2024.105223
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    References listed on IDEAS

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    Cited by:

    1. Luo, Shen & Li, Yuanhui, 2024. "The tone of earnings communication conferences and trade credit financing of listed companies," Finance Research Letters, Elsevier, vol. 70(C).
    2. Su, Zhifang & Deng, Changzhe & Feng, Yufang & Bai, Yulu & Xu, Zhikai, 2025. "Climate risks and corporate supply chain configuration:Evidence from China," Research in International Business and Finance, Elsevier, vol. 76(C).
    3. Hao Jing & Weiwei Zhan, 2024. "Outward Foreign Direct Investment and Supply Chain Concentration: Evidence from China," Sustainability, MDPI, vol. 16(16), pages 1-20, August.

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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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